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Answers (7)
Best Answer
- Craig Fialkowski GRI ,CDPE, "craigfial"
- Contributions:572
Fannie Mae is VERY difficult and trying to get every dime they can out of buyers. I just had them respond to my offer with "Highest and Best" due to multiple bidders. 2 days later they countered my offer wanting $15,000 more. We told them to take a hike!
If the appraisal comes in low and you send it to them, they will typically honor it, but it may have to go through a review committee.
Good luck.
If the appraisal comes in low and you send it to them, they will typically honor it, but it may have to go through a review committee.
Good luck.
- Brady82
- Contributions:9
Thank you all for your responses. Fannie Mae did in fact revise the sale price to the appraisal amount. Although they did revoke their 2% contribution to closing costs, it was well worth it considering that the appraisal amount was 7% lower than the sale price. I close on the purchase this coming Monday.
- jablum
- Contributions:16
Am in possible the same boat..soo tricky
- Jeannie Jarrett, "Jeannie Jarrett"
- Contributions:11
I have neer had a problem with Fannie Mae not honoring the lowest price, especially if the lowest price is the appraisal. Good Luck!
- Wes Black
- Contributions:509
My experience is that FM will honor the low appraisal and be done with it.
- Patrick Chang, "pat.chang.realtor"
- Contributions:36
As Crazy as it might sound, all of the deals I have done with Fannie Mae and a low appraisal, Fannie Mae has accepted the appraisal price. Luckily the difference in list price to appraisal wasn't huge.
In one way, what you have going for you, if your appraisal came in low then Fannie Mae can't realistically expect to sell the home for more to another buyer getting a loan.
Good Luck.
Patrick Chang
In one way, what you have going for you, if your appraisal came in low then Fannie Mae can't realistically expect to sell the home for more to another buyer getting a loan.
Good Luck.
Patrick Chang
- Brady82
- Contributions:9
Craig - That is good to know. All I can hope is that I receive grace for my only requested concession being 2% closing cost assistance, and I did not request any further concessions or repairs after inspection. Also, I am 8 days from the closing date, so I am going to hope that there is no committee, or that any committee overseeing this situation acts fast!
I can confirm that FM's negotiations are definitely very aggressive, as I was in a similar negotiation situation to yours 1.5 months ago, and I declined their counter to my "Highest and Best". Even in negotiations for my current purchase, we had to go back & forth 3 times before acceptance was reached.
I can confirm that FM's negotiations are definitely very aggressive, as I was in a similar negotiation situation to yours 1.5 months ago, and I declined their counter to my "Highest and Best". Even in negotiations for my current purchase, we had to go back & forth 3 times before acceptance was reached.
What's your experience with negotiating a purchase of a Fannie Mae property that appraised low?
What annoys me in retrospect is that every Fannie Mae REO I looked at in the prior month had all been on the upper end or higher than all comps, regardless of whether the comps are foreclosures or not. In pre-appraisal, pre-acceptance negotiations of my current purchase attempt, I did my best to limit the price to the aggressive side of the area's comps without going over the top of all comps. So this to me seems to somewhat invalidate the argument that "appraisals are catching up to actual home values" in my particular area, unless we re-frame "catching up" as "being less conservative".
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